Loanro will develop a personal relationship for you: we will be your friends in a difficult time. We will make the process bearable, so that you can get your life back on track as quickly and as painlessly as possible.


  • Application is brought before the High Court of South Africa. The application can be enrolled within five weeks.
  • Court rules entail that all creditors are included and that the court order must be accepted by all creditors.
  • No maximum debt for application to be lodged.
  • Should you owe, for example, an amount of R50 000.00, you only pay back R18 000.00 – it does not accrue interest.
  • No further debt can be made.
  • You pay the money directly to the curator.
  • Should you have an immovable asset (house), it will be sold by the curator to pay the creditors.

  • Application is made with the Magistrate Court, but it can take up to a year before it is enrolled.
  • Debt that has already been handed over to attorneys for legal action is excluded.
  • No further debt can be made.
  • You pay the entire amount, plus interest and costs.
  • No further debt can be made.
  • Monies are paid to a distributing agent who will then pay the creditors.
  • Should you have an immovable asset (house), you may keep it if the bank has accepted a minimum payment and legal action has not yet been taken.

  • Application is made in the Magistrate Court. Application will be enrolled within two months.
  • “Cash loan” agreements are excluded from an administration, and you have to will still pay the monies outstanding.
  • No further debt can be made.
  • Should you owe for example R50 000.00 it still accrues interest and costs in other words you will pay back approximately R132 000.00
  • No further debt can be made.
  • Your employer must give permission that the repayment amount is deducted straight from your salary.
  • Should you have immovable assets, you must still pay the premium sand can keep the property.


Here is a step-by-step summary of the process:

  1. We publish an advert in the Government Gazette and the Citizen. This will prevent any further legal procedures against you, i.e. execution notices, seizure on your movable and/or immovable property, etc.
  2. An ability statement is drafted that you must sign before a Commissioner of Oaths. This document is submitted for inspection at the Master of the High Court for 14 days and with the local Magistrate.
  3. Thereafter a registered letter is forwarded to all your creditors as notice of the surrendering of your estate. Your creditors thus contact me for information. You will also be provided with the same notice to enable you to forward to bothersome creditors.
  4. The South African Revenue Services are also notified, even if you are not registered with SARS.
  5. On the day of the court proceedings an advocate will represent you, there will be no need to attend any court hearing in person.
  6. After the application has been approved and granted by the Court, a curator is appointed to handle all financial matters on your behalf. The curator will contact you to arrange a consultation to explain the details. If you live outside of Pretoria or Johannesburg a telephonic consultation will suffice.
  7. The Court Rules determine that you must pay between 20c and 25c per rand in benefit to your creditors. In other words, if you owe FNB R1-00, then they should receive between 20c and 25c thereof. If your total debt is R50 000-00, you will pay R24 500-00; for R100 000-00 you will pay R35300-00; for R200 000-00 you will pay R57 000.00, and so forth (Please note that these are approximate figures). A fixed fee is already included in the amount payable, and in doing so you will not be caught off-guard by unexpected attorney or curator costs. The benefit of this approach is that the repayment amount does not accrue interest. Arrangements may be made with the curator to settle the amount with them in instalments of between 12 to 18 months. Therefore, if you owe R50 000 you can repay it in instalments of R1361-00 per month for 18 months – with no further interest or costs thereon.
  8. To generate the money in terms of the Rules of Court the following is done:
    1. We will forward you a document with a listing of general household items. You must identify your assets on the document and describe each item, for example: TV – Sansui 54cm, etc. This document will be forwarded to the valuator to establish the value of the items. The purpose thereof, as you do not own immovable property (e.g. a house), is to do movable asset surrender. The purchase agreement, prepared by the curator, will be presented to you in order to assist in purchasing your assets back. Your assets will be evaluated at a market related price, which will be the figure used to purchase your assets back.
    2. As soon as the application has been approved and granted, an order is granted the curator will contact you to confirm the details in respect of your assets.
      * Failure to comply with the arrangements made with the curator may result in removal of the furniture.
    3. Progress updates will occur on a weekly basis; at which time you will be updated with the latest developments with your application.


  1. In the instance that your property has already been scheduled for auction, is it very important to proceed with the application for sequestration as soon as possible. The moment the notice is published; all legal action will cease.
  2. A valuation will be done on the property. Documentation will be forwarded to you to be completed before the valuation will commence. All improvements and fixtures must be stated.
  3. The curator appointed by the Master of the High Court normally attempts to sell the property off-hand: an agent is appointed to try to sell the property. The agents will contact you to make an appointment to market the property. The agents used by the curator are very professional and will take your needs into consideration.
  4. You will still be able to occupy the property until the curator is appointed after your sequestration. As soon as the curator has been appointed, they will convert with you in terms of the procedure herein. You must keep paying your electricity bill to avoid a “blackout”.
  5. The curator will give you thirty days to vacate the property. It will not be advisable to vacate the property before then as a property sells best when occupied. This will minimize vandalism and unnecessary costs to the insolvent estate, for example to appoint guards on the property.
  6. Should the property be sold for less than the bond amount, you will not be held responsible for the difference. For example, if the bond was R1 million and the property is sold for R800 thousand, then the difference will be written off. Remember: you are declared insolvent and will not be liable for the losses.
  7. Another aspect is that you will not have to deal with the purchasers. All aspects such as bond approval, credit worthiness, etc. is handled by the curator.

It is important to know that should you have a property, movable or immovable, failure to disclose it in the sequestration will not be allowed. The property is an asset, and should be dealt with accordingly.


  1. If your vehicle is under hire purchase, the Rules of Court stipulate that any bank may repossess the vehicle. Court Rules determine that hire purchase falls within the Law of Insolvency and the vehicle’s payments must be made timorous and should be up to date. Should the instalments on the vehicle be up to date, financial institutions are willing to consider your request to keep the vehicle more indulgently and may result in you being able to keep the vehicle. This grant from the financial institutions is occurring more frequently. Please keep in mind that there is no guarantee for you to keep the vehicle, especially should your vehicle be in arrears. Please note that arrangements must be made with the financial institution prior to sequestration application.
  2. Vehicles registered in another person’s (or legal person’s) name will not form part of the estate.


  1. Your salary and other income is still your own and you do not have to pay any creditor.
  2. Only your creditors are notified of the process and not your employer or any other person. You will not be discharged from your work because of it.
  3. You will not have to attend court.


  1. You will be insolvent for at least the next 2-4 years. There are circumstances where you can apply for rehabilitation after 18 months, but keep in mind that this is an exception rather than the rule. For your insolvency period, you will not be credit worthy. You may receive permission from your curator for incredible circumstances, for example when you need to purchase a vehicle. This permission will not be granted before a window period of four months, and then the financial institution will require someone to stand as security.
  2. You may not have a cheque account or a credit card facility. You may under no circumstances occur any debt.